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When purchase costs of inventory regularly decline which method of inventory costing will yield the lowest gross profit and income?
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Should the plant accountant order the inventory purchase to lower income?
S. R. Marsh Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at S. R. Marsh is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year's net income and to take advantage of the changing income tax rate, the president of S. R. Marsh Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value. You strongly suspect that the president will return the purchased inventory after January 1st. Instructions Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
What method may be used to record a loss due to a price decline in the value of inventory?
Allowance method.
What are the advantages and disadvantages of First In First Out accounting method?
In FIFO inventory valuations the next item you sell is ASSUMED to be the item that has been sitting in inventory for the longest time period. The inventory items I've had in inventory the longest are considered the next ones sold. In essence you're depleting old inventory. In inflationary times the cost of your NEW(or replacement) inventory will be at a higher cost than the inventory you purchased in the past. Thus, if the selling price increases because of inflation you will INCREASE your Net Profit because you are selling the inventory items that cost less. So the advantage is that Net Profit goes up when you use FIFO during inflationary times AND your inventory will be valued at the actual replacement cost. The disadvantages is that if you use FIFO during inflationary times your Net Profit will go up which also means your Tax costs increases. Plus, if the price for the inventory levels off or declines your Net Profit will decline because your Cost of Goods Sold will be higher. It is my understanding that once you commit to a particular inventory methodolgy(LIFO, FIFO, Average) you are committed to that valuation system for at least 5 years.
What does credit card decline code 530?
It means "generic bank decline, no info specified."
Tertiary sector decline growth?
growth
Should the plant accountant order the inventory purchase to lower income?
S. R. Marsh Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at S. R. Marsh is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year's net income and to take advantage of the changing income tax rate, the president of S. R. Marsh Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value. You strongly suspect that the president will return the purchased inventory after January 1st. Instructions Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
What happens when actual sales are greater than forecasted sales?
inventory will decline.
The situation that requires a departure from the cost basis of accounting to the lower of cost or market basis in valuing inventory is necessitated by?
Decline in the value of inventory
Reasons for decline in inventory as a percentage?
i dont kwow and if you dont knw remove this page from here
What method may be used to record a loss due to a price decline in the value of inventory?
Allowance method.
What happens to your credit score when you purchase a home?
Initially it may decline, due to the numerous recent inquiries but it should eventually increase significantly.
What are the stages of Alzheimer's?
There are seven stages to Alzheimers. They are No Impairment, Little Decline, Mild Decline, Moderate Decline, Moderately Severe Decline, Severe Decline and Very Severe Decline.
What are the advantages and disadvantages of First In First Out accounting method?
In FIFO inventory valuations the next item you sell is ASSUMED to be the item that has been sitting in inventory for the longest time period. The inventory items I've had in inventory the longest are considered the next ones sold. In essence you're depleting old inventory. In inflationary times the cost of your NEW(or replacement) inventory will be at a higher cost than the inventory you purchased in the past. Thus, if the selling price increases because of inflation you will INCREASE your Net Profit because you are selling the inventory items that cost less. So the advantage is that Net Profit goes up when you use FIFO during inflationary times AND your inventory will be valued at the actual replacement cost. The disadvantages is that if you use FIFO during inflationary times your Net Profit will go up which also means your Tax costs increases. Plus, if the price for the inventory levels off or declines your Net Profit will decline because your Cost of Goods Sold will be higher. It is my understanding that once you commit to a particular inventory methodolgy(LIFO, FIFO, Average) you are committed to that valuation system for at least 5 years.
What is it called to cause panic selling by telling people that the value in a neighborhood will decline because of a specific event such as the purchase of homes by minorities and it is illegal?
Block Busting
What was the decline for the Maya?
what was the decline for the Maya
What caused spanish naval superiority to decline in the 1600s and 1700s?
Economis decline is what caused the naval superiority to decline then
Why has corporate liquidity decline since the mid-1960s?
However the long term decrease in liquidity since the late 1960's can be traced to more efficient inventory management practices such as just in time, point of sale, and other methods of inventory management; it can also be traced to electronic cash flow transfer systems and the ability to sell accounts receivable through the security of assets.
